Iran Resumes Strikes on Israel, Sending Oil Prices Sharply Higher
Oil prices jumped sharply in early Asian trade Monday after BBC Business reported that Iran launched its first missile strikes against Israel since the two countries agreed a fragile ceasefire in April.
Oil prices Iran strikes dominated the open, with the global Brent benchmark climbing 2.6% to $95.50 a barrel. US-traded crude moved in parallel, gaining 2.5% to reach $92.75.
Iran Warns of Sustained Attacks Ahead
Iran’s Islamic Revolutionary Guard Corps declared Monday’s assault the opening salvo of what it described as a full seven days of offensive action. The warning sent traders scrambling to reprice Middle East risk across energy markets.
US President Donald Trump quickly moved to contain the fallout. He told Axios he planned to phone Israeli Prime Minister Benjamin Netanyahu immediately and urge restraint. Trump said the two countries were close to a final nuclear agreement with Tehran and did not want the renewed violence to derail those talks. Israel’s military, meanwhile, signalled it was ready to respond the moment political authorization came through.
A Ceasefire That Has Rarely Held
The truce that took effect on 17 April followed US and Israeli strikes against Iranian targets in late February. From the start, both sides accused the other of violations, and the agreement has been tested repeatedly in the weeks since.
Oil markets have been volatile throughout. Prices surged after the initial February strikes and have remained elevated, hovering near the $95 level in recent sessions as traders assessed the long-term damage to regional energy flows.
Hormuz Risk Keeps Pressure on Energy Markets
A central concern for global supply chains is the Strait of Hormuz, the narrow waterway through which a significant share of the world’s seaborne oil and gas passes. Iran threatened earlier in the conflict to target any vessels attempting to transit the strait, a warning that has rattled shipping operators and kept insurance premiums elevated.
Trump separately announced a $700 million coal investment last week, citing rising domestic energy costs driven by the ongoing conflict. That move underscored how the Iran war is reshaping American energy policy far beyond the immediate theatre of fighting.
With Iran pledging to sustain its campaign through the week and Israel’s forces on standby, traders expect crude volatility to persist. Any breakdown in nuclear diplomacy would likely push prices meaningfully higher.
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